What is the difference between strategic plan and operational plan?

Question by Bhe: What is the difference between strategic plan and operational plan? Cite an example?

Best answer:

Answer by Bish_izh
Strategic planning consists of the process of developing strategies to reach a defined objective. As we adjudge a piece of planning “strategic” we anticipate it to operate on the grand scale and to take in “the huge picture” (in contradistinction to “tactical” planning, which by definition has to focus more on the tactics of individual detailed activities). “Long range” planning typically projects current activities and programs into a revised view of the external world, thereby describing results that will most likely occur . “Strategic” planning tries to “create” more desirable future results by (a) influencing the outside world or (b) adapting current programs and actions so as to have more favorable outcomes in the external environment.

Strategic planning takes place primarily in business activities. Within business, strategic planning might wage overall direction strategic management to a company or give specific direction in such areas as:

Financial strategies
Human resource/organizational development strategies
Information technology deployments
Development projects
Marketing strategy

An operational plan is an annual work plan. It describes short-term business strategies; it explains how a strategic plan will be place into operation (or what portion of a strategic plan will be addressed) during a given operational period (fiscal year). An operational plan is the basis for and justification of an annual operating budget request. Therefore, a strategic plan that has a five-year lifetime would drive five operational plans funded by five operating budgets.

Operational planning deals with short-term activities, generally on a one-year timeframe, which effectively operationalise (implement) the annual budget.

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